Package of Measures to help through Covid-19
The Chancellor has set out a package of measures to support public services, people and businesses through this period of disruption caused by COVID-19.
This includes a package of measures:
- Job Support Scheme - From 1st November 2020
- Statutory Sick Pay relief package for SMEs
- Job Retention Scheme for Employees (ceasing 31 Oct 2020)
- Self Employment Income Support Scheme
- Deferal of the self-assessment tax until January 2021.
- 12-month business rates holiday for all retail, hospitality and leisure businesses in England
- Deferral of payments of VAT and Self - Assessement Tax.
- Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- Discretionary grant funding for small business depending on the local area.
- Bounce Bank Loans for small business upto £50,000 or 25% of Turnover
- A Business Interruption Loan Scheme to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance
- HMRC Time To Pay Scheme
- Payment holiday for three months for Mortgage
We have seperate articles on most of the above on the side panel so please look at the details.
It is worthwhile picking up the phone to see if they can help you with existing borrowing repayments some are offering payment holidays and interest only options, increasing overdrafts, term loans etc. Many are offering to waiver the fees on new facilities. They may also be able to offer you the Business Interruption Loan.
Things to consider:
- Whilst your business is still operating and is viable think about getting finance now, do not leave it until your finances change such as they adversely affect a loan application. You will be risk assessed based on your last set of accounts, current business bank statements and Directors' credit scores.
- If you run a business or are self-employed and are concerned about paying your tax due to coronavirus, you can call HMRC’s helpline for help and advice: 0800 0159 559. Do you want to delay paying some of your taxes?
- Make sure you have a cashflow forecast so you know when the pinch points will be. Although planning for the future is uncertain right now you still need to talk to the experts including your accountant and sketch a plan for the future. The Government help including loans will not last forever.
- Chase outstanding accounts, but be empathic with your debt collection. Maybe offer small discounts to get people to pay you on time. For bigger invoices that historically take 60 days to pay, there are solutions to speed this up. We can recommend Apps that you can adopt to making this easier and rewarding.
Please call us and speak to your normal relationship director/manager if you would like to discuss any of the above or any other matter.
If you are not a client please email firstname.lastname@example.org or call the main number 01923 224411.
We are here to help you through these tough times.